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We married in 2016. We both had homes. Selling the home she owned. We are keeping my home as primary residence. What are our tax liabilities on this sale?

 
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Hal_Al
Level 15

We married in 2016. We both had homes. Selling the home she owned. We are keeping my home as primary residence. What are our tax liabilities on this sale?

What date did she move out?  What's the projected date of sale? When did she buy and move in to the home? How has the home been used, since she moved out?

 

In general, the home must be sold within 3 years of moving out, in order to qualify for the home sale exclusion of the capital gain. In addition she must have lived in the home a minimum of 2 years. The maximum exclusion is $250,000, since only one of you lived in the home

If the house was rented out, you have to pay tax on "depreciation recapture", even if you qualify for the capital gains exclusion.

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